World IP Review | February.03.2014
Intellectual property partner Alex Chachkes recently spoke with World IP Review about Twitter’s acquisition of over 900 IBM patents.
The deal with IBM was probably prompted by its claims that Twitter had infringed three patents, but it’s much bigger than that, Chachkes stated.
“It’s 900 patents against three: this is clearly such a bigger deal than just the three patents that IBM mentioned in their letter. I think we can take Twitter at its word: they said this is about the sense of value of having a healthy patent portfolio. I don’t expect them to use patents offensively like an NPE would; it’s not conceivable,” he said.
Chachkes added that, “there is other value to acquiring an enormous chunk of patents – there is enterprise value ... it gives them something to trade and there is a strategic value to pre-empt a space. But the strategic value and enterprise value doesn’t seem to be the case here – it seems to be a sense of value, protecting them in the future.”